World Bank has acquired 1776 G Street, an eight-story office building in Washington, D.C., from WashREIT for $129.5 million, according to the seller.
World Bank has been the building’s sole office tenant for more than 30 years, and earlier this year renewed its lease in the building through 2025 with an option to buy. The international financial institution also has its headquarters at nearby 1818 H Street NW.
“We chose to sell 1776 G to limit our exposure to single-tenant risk,” Paul McDermott, WashREIT’s president and CEO, told Commercial Observer. “The proceeds of the sale will help pay down debt and further strengthen WashREIT’s financial position as it begins 2020.”
Originally built in 1979, the 265,000-square-foot building is situated a block from the White House in D.C.’s Central Business District. It’s also close by both the Farragut North and Farragut West Metro Stations.
According to McDermott, with the sale, WashREIT has reduced its exposure to single-tenant assets, from 26 percent to 7 percent of office square footage over the past two years, which supports its strategy to improve its risk profile and strengthen cash flows and FAD growth.